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Apqc business improvement


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Apqc business improvement

  1. 1. PROC E S S C L A S S I F I C ATI O N F R A M E WO R K S M THE FRAMEWORK FOR PROCESS IMPROVEMENT Experience shows that the potential of benchmarking to drive dramatic improvement lies squarely in making out-of-the-box comparisons and searching for insights not typically found within intra-industry paradigms. To enable this beneficial benchmarking, the APQC Process Classification FrameworkSM (PCF) serves as a high-level, industry-neutral enterprise process model that allows organizations to see their business processes from a cross-industry viewpoint. This cross-industry framework has experienced more than 15 years of creative use by thousands of organizations worldwide. The PCF provides the foundation for the Open Standards Benchmarking CollaborativeSM (OSBC) database and the work of its advisory council of global industry leaders. The PCF will continue to be enhanced as the OSBC database further develops definitions, processes, and measures. The PCF and associated measures and benchmarking surveys are available for download and completion at no charge from the Open Standards Benchmarking Collaborative Web site at To capture the value inherent in intra-industry benchmarking, industry- specific frameworks are also available on the APQC Web site. Organizations can therefore choose the framework most relevant to specific process improvement needs, whether benchmarking, business process management/re-engineering, or content management. HISTORY The Process Classification Framework was originally envisioned as a APQC would like to acknowledge the contributions of the various taxonomy of business processes and a common language through which member organizations and individual members that have contributed APQC member organizations could benchmark their processes. The time, content, and expertise in the development of this version of the initial design involved APQC and more than 80 organizations with strong PCF as well as each of the previous versions. These contributions and interest in advancing the use of benchmarking in the United States and suggestions are vital to keeping the framework current and relevant to worldwide. Since its inception in 1992, the PCF has seen updates to businesses throughout the world. most of its content. These updates keep the framework current with the ways that organizations do business around the world. In 2008, APQC and IBM worked together to enhance the cross-industry PCF and to develop a number of industry-specific process frameworks. Version 5.1.0-en-XI • September 2009 1
  2. 2. PROCESS CLASSIFICATION FRAMEWORK TABLE OF CONTENTS Interpreting the PCF ______________________________________________________________________________ 3 Overview _______________________________________________________________________________________ 4 1.0 Develop Vision and Strategy ___________________________________________________________________ 4 2.0 Design and Manage Products and Services _______________________________________________________ 5 3.0 Market and Sell Products and Services __________________________________________________________ 5 4.0 Deliver Products and Services _________________________________________________________________ 7 5.0 Manage Customer Service ____________________________________________________________________ 9 6.0 Develop and Manage Human Capital ____________________________________________________________ 9 7.0 Manage Information Technology _______________________________________________________________11 8.0 Manage Financial Resources __________________________________________________________________ 14 9.0 Acquire, Construct, and Manage Property ______________________________________________________ 17 10.0 Manage Environmental Health and Safety _______________________________________________________ 17 11.0 Manage External Relationships ________________________________________________________________ 18 12.0 Manage Knowledge, Improvement, and Change __________________________________________________ 18 LOOKING FORWARD RIGHTS AND PERMISSIONS The APQC Process Classification Framework is an evolving model, ©2009 APQC. ALL RIGHTS RESERVED. APQC encourages the wide which APQC will continue to enhance and improve regularly. Thus, distribution, discussion, and use of the PCF for classifying and defining APQC encourages comments, suggestions, and more importantly, processes. APQC grants permission for use and adaptation of the the sharing of insights from having applied the PCF within your PCF for internal use. For external use, APQC grants permission for organization. Share your suggestions and experiences with the publication, distribution, and use, provided that proper copyright PCF by e-mailing acknowledgment is made to APQC. No modifications to the look or content should be made in external venues. Please use the following ABOUT APQC text when reusing the PCF in external print or electronic content. An internationally recognized resource for process and performance improvement, APQC helps organizations adapt to rapidly changing THE APQC PROCESS CLASSIFICATION environments, build new and better ways to work, and succeed in FRAMEWORKSM a competitive marketplace. With a focus on productivity, knowledge The PCF was developed by APQC and its member companies as an management, benchmarking, and quality improvement initiatives, open standard to facilitate improvement through process management APQC works with its member organizations to identify best practices; and benchmarking, regardless of industry, size, or geography. The PCF discover effective methods of improvement; broadly disseminate organizes operating and management processes into 12 enterprise- findings; and connect individuals with one another and the knowledge, level categories, including process groups and over 1,000 processes training, and tools they need to succeed. Founded in 1977, APQC is and associated activities. The PCF and associated measures and a member-based nonprofit serving organizations around the world benchmarking surveys are available for download and completion at in all sectors of business, education, and government. APQC is no charge from the Open Standards Benchmarking Collaborative also a proud winner of the 2003 and 2004 North American Most Web site at Admired Knowledge Enterprises (MAKE) awards. This award is based on a study by Teleos, a European based research firm, UNDERSTANDING THE NUMBERING SCHEME and the KNOW network. Beginning with Version 5.0.0, the PCF uses a numbering scheme that differs from previous versions. The cross-industry framework and the industry-specific frameworks collectively form a library of process The PCF is written in United States English language format. 2 Permission granted to photocopy for personal use. ©2009 APQC
  3. 3. elements for the OSBC. Each process element is referred to by two INTERPRETING THE PCF numbers: a number used to locate the content within that particular Category: The highest level within the PCF is indicated by whole framework (in the format and a serial number used to uniquely numbers (e.g., 8.0 and 9.0) identify the process element across all of the various OSBC frameworks Process Group: Items with one decimal numbering (e.g., 8.1 and 9.1) (beginning with 10000). are considered a process group. For example, the process element “1.2 Develop business strategy Process: Items with two decimal numberings (e.g., 8.1.1 and 9.1.2) (10015)” is uniquely identified by the serial number “10015” and the are considered processes. hierarchical reference number “1.2.” In industry-specific frameworks, any process element identified as “10015” will have the same scope Activity: Items with three decimal numbering (e.g. and and definition, but may be labeled differently. are considered activities within a process. Version 5.1.0-en-XI • September 2009 3
  4. 4. 1.0 Develop Vision and Strategy (10002) 1.1 Define the business concept and long-term vision (10014) 1.2.3 Select long-term business strategy (10039) 1.1.1 Assess the external environment (10017) 1.2.4 Coordinate and align functional and process Analyze and evaluate competition (10021) strategies (10040) Identify economic trends (10022) 1.2.5 Create organizational design (structure, Identify political and regulatory issues (10023) governance, reporting, etc.) (10041) Assess new technology innovations (10024) Evaluate breadth and depth of organizational Analyze demographics (10025) structure (10049) Identify social and cultural changes (10026) Perform job-specific roles mapping and value- Identify ecological concerns (10027) added analyses (10050) 1.1.2 Survey market and determine customer needs and Develop role activity diagrams to assess hand- wants (10018) off activity (10051) Conduct qualitative/quantitative assessments Perform organization redesign workshops (10028) (10052) Capture and assess customer needs (10029) Design the relationships between 1.1.3 Perform internal analysis (10019) organizational units (10053) Analyze organizational characteristics (10030) Develop role analysis and activity diagrams for Create baselines for current processes (10031) key processes (10054) Analyze systems and technology (10032) Assess organizational implication of feasible Analyze financial positions (10033) alternatives (10055) Identify enterprise core competencies (10034) Migrate to new organization (10056) 1.1.4 Establish strategic vision (10020) 1.2.6 Develop and set organizational goals (10042) Align stakeholders around strategic vision 1.2.7 Formulate business unit strategies (10043) (10035) Communicate strategic vision to stakeholders 1.3 Manage strategic initiatives (10016) (10036) 1.3.1 Develop strategic initiatives (10057) 1.3.2 Evaluate strategic initiatives (10058) 1.2 Develop business strategy (10015) 1.3.3 Select strategic initiatives (10059) 1.2.1 Develop overall mission statement (10037) 1.3.4 Establish high-level measures (10060) Define current business (10044) Formulate mission (10045) Communicate mission (10046) 1.2.2 Evaluate strategic options to achieve the objectives (10038) Define strategic options (10047) Assess and analyze impact of each option (10048) Develop sustainability strategy (14189) Develop global support and shared services strategy (14190) Develop risk mitigation and management strategy (14191) Develop lean/continuous improvement strategy (14197) 4 Permission granted to photocopy for personal use. ©2009 APQC
  5. 5. 2.0 Develop and Manage Products and Services (10003) 2.1 Manage product and service portfolio (10061) Assign resources to product/service project 2.1.1 Evaluate performance of existing products/services (10083) against market opportunities (10063) Prepare high-level business case and technical 2.1.2 Define product/service development requirements assessment (10084) (10064) Develop product/service design specifications Identify potential improvements to existing (10085) products and services (10068) Document design specifications (10086) Identify potential new products and services Conduct mandatory and elective external (10069) reviews (legal, regulatory, standards, internal) (10087) 2.1.3 Perform discovery research (10065) Build prototypes (10088) Identify new technologies (10070) Eliminate quality and reliability problems (10089) Develop new technologies (10071) Conduct in-house product/service testing and Assess feasibility of integrating new leading evaluate feasibility (10090) technologies into product/service concepts Identify design/development performance (10072) indicators (10091) 2.1.4 Confirm alignment of product/service concepts with Collaborate on design with suppliers and business strategy (10066) contract manufacturers (10092) Plan and develop cost and quality targets 2.2.2 Test market for new or revised products and (10073) services (10081) Prioritize and select new product/service Prepare detailed market study (10093) concepts (10074) Conduct customer tests and interviews (10094) Specify development timing targets (10075) Finalize product/service characteristics and Plan for product/service offering modifications business cases (10095) (10076) Finalize technical requirements (10096) 2.1.5 Manage product and service life cycle (10067) Identify requirements for changes to Introduce new products/services (10077) manufacturing/delivery processes (10097) Retire outdated products/services (10078) 2.2.3 Prepare for production (10082) Identify and refine performance indicators Develop and test prototype production and/or (10079) service delivery process (10098) 2.1.6 Manage product and service master data (14192) Design and obtain necessary materials and 2.2 Develop products and services (10062) equipment (10099) Install and validate production process or 2.2.1 Design, build, and evaluate products and services methodology (10100) (10080) 3.0 Market and Sell Products and Services (10004) 3.1 Understand markets, customers, and capabilities (10101) Determine target segments (10117) 3.1.1 Perform customer and market intelligence analysis Prioritize opportunities consistent with cap- (10106) abilities and overall business strategy (10118) Conduct customer and market research Validate opportunities (10119) (10108) 3.2 Develop marketing strategy (10102) Identify market segments (10109) Analyze market and industry trends (10110) 3.2.1 Define offering and customer value proposition Analyze competing organizations, competitive/ (11168) substitute products (10111) Define offering and positioning (11169) Evaluate existing products/brands (10112) Develop value proposition including brand Assess internal and external business positioning for target segments (11170) environment (10113) Validate value proposition with target segments (11171) 3.1.2 Evaluate and prioritize market opportunities (10107) Develop new branding (11172) Quantify market opportunities (10116) Version 5.1.0-en-XI • September 2009 5
  6. 6. 3.2.2 Define pricing strategy to align to value proposition 3.4.4 Develop and manage pricing (10151) (10123) Determine pricing based on volume/unit Establish guidelines for applying pricing of forecast (10163) products/services (10124) Execute pricing plan (10164) Approve pricing strategies/policies (10125) Evaluate pricing performance (10165) 3.2.3 Define and manage channel strategy (10122) Refine pricing as needed (10166) Evaluate channel attributes and partners 3.4.5 Develop and manage promotional activities (10152) (10126) Define promotional concepts (10167) Determine channel fit with target segments Plan and test promotional activities (10168) (10127) Execute promotional activities (10169) Select channels for target segments (10128) Evaluate promotional performance metrics (10170) 3.3 Develop sales strategy (10103) Refine promotional performance metrics 3.3.1 Develop sales forecast (10129) (10171) Gather current and historic order information Incorporate learning into future/planned (10134) consumer promotions (10172) Analyze sales trends and patterns (10135) 3.4.6 Track customer management measures (10153) Generate sales forecast (10136) Determine customer loyalty/lifetime value Analyze historical and planned promotions and (10173) events (10137) Analyze customer revenue trend (10174) 3.3.2 Develop sales partner/alliance relationships (10130) Analyze customer attrition and retention rates Identify alliance opportunities (10138) (10175) Design alliance programs and methods for Analyze customer metrics (10176) selecting and managing relationships (10139) Revise customer strategies, objectives, and Select alliances (10140) plans based on metrics (10177) Develop partner and alliance management 3.4.7 Develop and manage packaging strategy (10154) strategies (10141) Plan packaging strategy (10178) Establish partner and alliance management Test packaging options (10179) goals (10142) Execute packaging strategy (10180) 3.3.3 Establish overall sales budgets (10131) Refine packaging (10181) Calculate product revenue (10143) Determine variable costs (10144) 3.5 Develop and manage sales plans (10105) Determine overhead and fixed costs (10145) 3.5.1 Generate leads (10182) Calculate net profit (10146) Identify potential customers (10188) Create budget (10147) Identify leads (10189) 3.3.4 Establish sales goals and measures (10132) 3.5.2 Manage customers and accounts (10183) 3.3.5 Establish customer management measures (10133) Develop sales/key account plan (11173) Manage customer relationships (11174) 3.4 Develop and manage marketing plans (10104) 3.5.3 Manage customer sales (10184) 3.4.1 Establish goals, objectives, and metrics for Perform sales calls (10190) products by channels/segments (10148) Perform pre-sales activities (10191) 3.4.2 Establish marketing budgets (10149) Close the sale (10192) Confirm marketing alignment to business Record outcome of sales process (10193) strategy (10155) 3.5.4 Manage sales orders (10185) Determine costs of marketing (10156) Accept and validate sales orders (10194) Create marketing budget (10157) Collect and maintain customer account 3.4.3 Develop and manage media (10150) information (10195) Define media objectives (10158) Determine availability (10196) Develop marketing messages (10159) Determine fulfillment process (10197) Define target audience (10160) Enter orders into system and identify/perform Engage media provider (10161) cross-sell/up-sell activity (10198) Develop and execute advertising (10162) Process back orders and updates (10199) Develop and execute other marketing Handle order inquiries including post-order campaigns/programs (11253) fulfillment transactions (10200) Assess brand/product marketing plan 3.5.5 Manage sales force (10186) performance (11254) Determine sales resource allocation (10209) Establish sales force incentive plan (10210) 6 Permission granted to photocopy for personal use. ©2009 APQC
  7. 7. 3.5.6 Manage sales partners and alliances (10187) Agree on partner and alliance commissions Provide sales and product training to sales (10213) partners/alliances (10211) Evaluate partner/alliance results (10214) Develop sales forecast by partner/alliance (10212) 4.0 Deliver Products and Services 4.1 Plan for and acquire necessary resources Manage collaborative replenishment planning (Supply Chain Planning) (10215) (10256) 4.1.1 Develop production and materials strategies (10221) Manage requirements for partners (10257) Define manufacturing goals (10229) Calculate destination dispatch plan (10258) Define labor and materials policies (10230) Manage dispatch plan attainment (10259) Define outsourcing policies (10231) Calculate destination load plans (10260) Define manufacturing capital expense policies Manage partner load plan (10261) (10232) Manage cost of supply (10262) Define capacities (10233) Manage capacity utilization (10263) Define production network and supply 4.1.6 Establish distribution planning constraints (10226) constraints (10234) Establish distribution center layout constraints Define production process (14193) (10267) Define production workplace layout and Establish inventory management constraints infrastructure (14194) (10268) 4.1.2 Manage demand for products and services (10222) Establish transportation management Develop baseline forecasts (10235) constraints (10269) Collaborate with customers (10236) 4.1.7 Review distribution planning policies (10227) Develop consensus forecast (10237) Review distribution network (10264) Allocate available to promise (10238) Establish sourcing relationships (10265) Monitor activity against forecast and revise Establish dynamic deployment policies (10266) forecast (10239) 4.1.8 Assess distribution planning performance (10228) Evaluate and revise forecasting approach Establish appropriate performance indicators (10240) (metrics) (10270) Measure forecast accuracy (10241) Establish monitoring frequency (10271) 4.1.3 Create materials plan (10223) Calculate performance measures (10272) Create unconstrained plan (10242) Identify performance trends (10273) Collaborate with supplier and contract Analyze performance benchmark gaps (10274) manufacturers (10243) Prepare appropriate reports (10275) Identify critical materials and supplier capacity Develop performance improvement plan (10244) (10276) Monitor material specifications (10245) 4.1.9 Develop quality standards and procedures (10368) Generate constrained plan (10246) Establish quality targets (10371) Define production balance and control (14196) Develop standard testing procedures (10372) 4.1.4 Create and manage master production schedule Communicate quality specifications (10373) (10224) 4.2 Procure materials and services (10216) Generate site-level plan (10247) Manage work-in-progress inventory (10248) 4.2.1 Develop sourcing strategies (10277) Collaborate with suppliers (10249) Develop procurement plan (10281) Generate and execute site schedule (10250) Clarify purchasing requirements (10282) Develop inventory strategy (10283) 4.1.5 Plan distribution requirements (10225) Match needs to supply capabilities (10284) Allocate available to promise (10251) Analyze company’s spend profile (10285) Maintain master data (10252) Seek opportunities to improve efficiency and Determine finished goods inventory value (10286) requirements at destination (10253) Collaborate with suppliers to identify sourcing Calculate requirements at destination (10254) opportunities (10287) Calculate consolidation at source (10255) Version 5.1.0-en-XI • September 2009 7
  8. 8. 4.2.2 Select suppliers and develop/maintain contracts Generate service order (10326) (10278) 4.4.2 Identify and schedule resources to meet service Select suppliers (10288) requirements (10321) Certify and validate suppliers (10289) Create resourcing plan and schedule (10327) Negotiate contracts (10290) Create service order fulfillment schedule Manage contracts (10291) (10328) 4.2.3 Order materials and services (10279) Develop service order (10329) Process/Review requisitions (10292) 4.4.3 Provide service to specific customers (10322) Approve requisitions (10293) Organize daily service order fulfillment Solicit/Track vendor quotes (10294) schedule (10330) Create/Distribute purchase orders (10295) Dispatch resources (10331) Expedite orders and satisfy inquiries (10296) Manage order fulfillment progress (10332) Record receipt of goods (10297) Validate order fulfillment block completion Research/Resolve exceptions (10298) (10333) 4.2.4 Appraise and develop suppliers (10280) 4.4.4 Ensure quality of service (10323) Monitor/Manage supplier information (10299) Identify completed orders for feedback (10334) Prepare/Analyze procurement and vendor Identify incomplete orders and service failures performance (10300) (10335) Support inventory and production processes Solicit customer feedback on services (10301) delivered (10336) Monitor quality of product delivered (10302) Process customer feedback on services delivered (10337) 4.3 Produce/Manufacture/Deliver product (10217) 4.3.1 Schedule production (10303) 4.5 Manage logistics and warehousing (10219) Generate line level plan (10306) 4.5.1 Define logistics strategy (10338) Generate detailed schedule (10307) Translate customer service requirements into Schedule production orders and create lots logistics requirements (10343) (10308) Design logistics network (10344) Release production orders and create lots Communicate outsourcing needs (10345) (10309) Develop and maintain delivery service policy 4.3.2 Produce product (10304) (10346) Manage raw material inventory (10310) Optimize transportation schedules and costs Execute detailed line schedule (10311) (10347) Rerun defective items (10313) Define key performance measures (10348) Assess production performance (10314) 4.5.2 Plan inbound material flow (10339) 4.3.3 Schedule and perform maintenance (10305) Plan inbound material receipts (10349) Determine process for preventive (planned) Manage inbound material flow (10350) maintenance (Preventive Maintenance Orders) Monitor inbound delivery performance (10351) (10315) Manage flow of returned products (10352) Determine process for requested (unplanned) 4.5.3 Operate warehousing (10340) maintenance (Work Order Cycle) (10316) Track inventory deployment (10353) Execute maintenance (10317) Receive, inspect, and store inbound deliveries Calibrate test equipment (10318) (10354) Report maintenance issues (10319) Track product availability (10355) 4.3.4 Perform quality testing (10369) Pick, pack, and ship product for delivery (10356) Perform testing using the standard testing Track inventory accuracy (10357) procedure (10374) Track third-party logistics storage and shipping Record test results (10375) performance (10358) 4.3.5 Maintain production records and manage lot Manage physical finished goods inventory traceability (10370) (10359) Determine lot numbering system (10376) 4.5.4 Operate outbound transportation (10341) Determine lot usage (10377) Plan, transport, and deliver outbound product (10360) 4.4 Deliver service to customer (10218) Track carrier delivery performance (10361) 4.4.1 Confirm specific service requirements for individual Manage transportation fleet (10362) customer (10320) Process and audit carrier invoices and Process customer request (10324) documents (10363) Create customer profile (10325) 8 Permission granted to photocopy for personal use. ©2009 APQC
  9. 9. 4.5.5 Manage returns; manage reverse logistics (10342) Manage and process warranty claims (10367) Authorize and process returns (10364) Manage repair/refurbishment and return to Perform reverse logistics (10365) customer/stock (14195) Perform salvage activities (10366) 5.0 Manage Customer Service (10006) 5.1 Develop customer care/customer service strategy (10378) 5.3 Measure and evaluate customer service operations 5.1.1 Develop customer service segmentation/ (10380) prioritization (e.g., tiers) (10381) 5.3.1 Measure customer satisfaction with customer Analyze existing customers (10384) requests/inquiries handling (10401) Analyze feedback of customer needs (10385) Gather and solicit post-sale customer feedback 5.1.2 Define customer service policies and procedures on products and services (10404) (10382) Solicit post-sale customer feedback on ad 5.1.3 Establish service levels for customers (10383) effectiveness (10405) Analyze product and service satisfaction 5.2 Plan and manage customer service operations (10379) data and identify improvement opportunities 5.2.1 Plan and manage customer service work force (10406) (10387) Provide customer feedback to product Forecast volume of customer service contacts management on products and services (10407) (10390) 5.3.2 Measure customer satisfaction with customer- Schedule customer service work force (10391) complaint handling and resolution (10402) Track work force utilization (10392) Solicit customer feedback on complaint Monitor and evaluate quality of customer handling and resolution (11236) interactions with customer service Analyze customer complaint data and identify representatives (10393) improvement opportunities (11237) 5.2.2 Manage customer service requests/inquiries (10388) 5.3.3 Measure customer satisfaction with products and Receive customer requests/inquiries (10394) services (10403) Route customer requests/inquiries (10395) Gather and solicit post-sale customer feedback Respond to customer requests/inquiries on products and services (11238) (10396) Solicit post-sale customer feedback on ad 5.2.3 Manage customer complaints (10389) effectiveness (11239) Receive customer complaints (10397) Analyze product and service satisfaction data Route customer complaints (10398) and identify improvement opportunities (11240) Resolve customer complaints (10399) Provide customer feedback to product Respond to customer complaints (10400) management on products and services (11241) 6.0 Develop and Manage Human Capital (10007) 6.1 Develop and manage human resources (HR) planning, Plan employee resourcing requirements per policies, and strategies (10409) unit/organization (10424) 6.1.1 Develop human resources strategy (10415) Develop compensation plan (10425) Identify strategic HR needs (10418) Develop succession plan (10426) Define HR and business function roles and Develop employee diversity plan (10427) accountability (10419) Develop other HR programs (10428) Determine HR costs (10420) Develop HR policies (10429) Establish HR measures (10421) Administer HR policies (10430) Communicate HR strategies (10422) Plan employee benefits (10431) 6.1.2 Develop and implement human resources plans Develop strategy for HR systems/technologies/ (10416) tools (10432) Gather skill requirements according to Develop work force strategy models (10433) corporate strategy and market environment 6.1.3 Monitor and update plans (10417) (10423) Measure realization of objectives (10434) Version 5.1.0-en-XI • September 2009 9
  10. 10. Measure contribution to business strategy Evaluate and review performance program (10435) (10481) Communicate plans and provide updates to 6.3.3 Manage employee relations (10471) stakeholders (10436) Manage health and safety (10482) Determine value added from HR function Manage labor relations (10483) (10437) Manage collective bargaining process (10484) Review and revise HR plans (10438) Manage labor management partnerships (10485) 6.2 Recruit, source, and select employees (10410) 6.3.4 Manage employee development (10472) 6.2.1 Create and develop employee requisitions (10439) Develop competency management plans (10486) Align staffing plan to work force plan and Define employee development guidelines business unit strategies/resource needs (10487) (10445) Develop employee career plans (10488) Develop and open job requisition (10446) Manage employee skills development (10489) Develop job description (10447) Post requisition (10448) 6.3.5 Develop and train employees (10473) Manage internal/external job posting Web Align employee and organization development sites (10449) needs (10490) Change//Update requisition (10450) Develop competencies (10491) Notify hiring manager (10451) Establish training needs by analysis of Manage requisition date (10452) required and available skills (10492) Develop, conduct, and manage employee and/ 6.2.2 Recruit/Source candidates (10440) or management training programs (10493) Determine recruitment methods (10453) Perform recruiting activities/events (10454) 6.4 Reward and retain employees (10412) Manage recruitment vendors (10455) 6.4.1 Develop and manage reward, recognition, and 6.2.3 Screen and select candidates (10441) motivation programs (10494) Identify and deploy candidate selection tools Develop salary/compensation structure and (10456) plan (10498) Interview candidates (10457) Develop benefits and reward plan (10499) Test candidates (10458) Perform competitive analysis of benefit and Select and reject candidates (10459) rewards (10500) 6.2.4 Manage pre-placement verification (10442) Identify compensation requirements based on Complete candidate background information financial, benefits, and HR policies (10501) (10460) Administer compensation and rewards to Conduct pre-employment screening (10461) employees (10502) Recommend/not recommend candidate (10462) Reward and motivate employees (10503) 6.2.5 Manage new hire/re-hire (10443) 6.4.2 Manage and administer benefits (10495) Draw up and make offer (10463) Deliver employee benefits program (10504) Negotiate offer (10464) Administer benefit enrollment (10505) Hire candidate (10465) Process claims (10506) 6.2.6 Track candidates (10444) Perform benefit reconciliation (10507) Create applicant record (10466) 6.4.3 Manage employee assistance and retention (10496) Manage/track applicant data (10467) Deliver programs to support work/life balance Archive and retain records of non-hires (10468) for employees (10508) Develop family support systems (10509) 6.3 Develop and counsel employees (10411) Review retention and motivation indicators 6.3.1 Manage employee orientation and deployment (10510) (10469) Review compensation plan (10511) Create/maintain employee on-boarding 6.4.4 Administer Payroll (10497) program (10474) Introduce new employees to managers (10475) 6.5 Redeploy and retire employees (10413) Introduce workplace (10476) 6.5.1 Manage promotion and demotion process (10512) Evaluate the effectiveness of the employee 6.5.2 Manage separation (10513) on-boarding program (11243) 6.5.3 Manage retirement (10514) 6.3.2 Manage employee performance (10470) 6.5.4 Manage leave of absence (10515) Define performance objectives (10479) Review, appraise, and manage employee 6.5.5 Develop and implement employee outplacement performance (10480) (10516) 10 Permission granted to photocopy for personal use. ©2009 APQC
  11. 11. 6.5.6 Manage deployment of personnel (10517) 6.6.4 Manage human resource information systems 6.5.7 Relocate employees and manage assignments (HRIS) (10525) (10518) 6.6.5 Develop and manage employee metrics (10526) 6.5.8 Manage employment reduction and retirement 6.6.6 Develop and manage time and attendance (10527) (10519) 6.6.7 Manage employee communication (10528) 6.5.9 Manage expatriates (10520) Develop employee communication plan 6.5.10 Manage employee relocation process (10521) (10529) Manage/collect employee suggestions and 6.6 Manage employee information (10414) perform employee research (10530) 6.6.1 Manage reporting processes (10522) Manage employee grievances (10531) 6.6.2 Manage employee inquiry process (10523) Publish employee communications (10532) 6.6.3 Manage and maintain employee data (10524) 7.0 Manage Information Technology (10008) 7.1 Manage the business of information technology (10563) Establish and maintain accounting process 7.1.1 Develop the enterprise IT strategy (10570) (10623) Build strategic intelligence (10603) Tie project funding to business case decision Identify long-term IT needs of the enterprise in checkpoints (10624) collaboration with stakeholders (10604) 7.1.6 Evaluate and communicate IT business value and Define strategic standards, guidelines, and performance (10575) principles (10605) Establish and monitor key performance Define and establish IT architecture and indicators (10625) development standards (10606) Evaluate IT plan performance (10626) Define strategic vendors for IT components Communicate IT value (10627) (10607) 7.1.7 Perform IT staff management (10576) Establish IT governance organization and Develop IT leadership and staff (10628) processes (10608) Manage IT staff performance (10629) Build strategic plan to support business 7.1.8 Manage IT suppliers and contracts (10577) objectives (10609) Develop IT (development and delivery) 7.1.2 Define the enterprise architecture (10571) sourcing strategies (10630) Establish the enterprise architecture definition Negotiate with suppliers (10631) (10611) Establish and maintain supplier relationships Confirm enterprise architecture maintenance (10632) approach (10612) Evaluate supplier performance (10633) Maintain the relevance of the enterprise Assess contract performance (10634) architecture (10613) Act as clearinghouse for IT research and 7.2 Develop and manage IT customer relationships (10564) innovation (10614) 7.2.1 Develop IT services and solutions strategy (10578) Govern the enterprise architecture (10615) Research IT services and solutions to address 7.1.3 Manage the IT portfolio (10572) business and user requirements (11244) Establish the IT portfolio (10616) Translate business and user requirements into Analyze and evaluate the value of the IT IT services and solutions requirements (11245) portfolio for the enterprise (10617) Formulate IT services and solutions strategic Provision resources in accordance with initiatives (11246) strategic priorities (10618) Coordinate strategies with internal 7.1.4 Perform IT research and innovation (10573) stakeholders to ensure alignment (11247) Research technologies to innovate IT services Evaluate and select IT services and solutions and solutions (10620) strategic initiatives (11248) Transition viable technologies for IT services 7.2.2 Develop and manage IT service levels (10579) and solutions development (10621) Create and maintain the IT services and 7.1.5 Perform IT financial management (10574) solutions catalog (10640) Develop and maintain IT services and solutions Establish and maintain business and IT service cost transparency (10622) level agreements (10641) Version 5.1.0-en-XI • September 2009 11
  12. 12. Evaluate and report service-level attainment 7.4 Manage enterprise information (10565) results (10642) 7.4.1 Develop information and content management Communicate business and IT service-level strategies (10583) improvement opportunities (10643) Understand information and content 7.2.3 Perform demand-side management (DSM) for IT management needs and the role of IT services services (10580) for executing the business strategy (10654) Analyze IT services and solutions consumption Assess the information and content and usage (10644) management implications of new technologies Develop and implement incentive programs (10655) that improve consumption efficiency (10645) Identify and prioritize information and content Develop volume/unit forecast for IT services management actions (10656) and solutions (10646) 7.4.2 Define the enterprise information architecture 7.2.4 Manage IT customer satisfaction (10581) (10584) Capture and analyze customer satisfaction Define information elements, composite (10647) structure, logical relationships and constraints, Assess and communicate customer taxonomy, and derivation rules (10657) satisfaction patterns (10648) Define information access requirements Initiate improvements based on customer (10658) satisfaction patterns (10649) Establish data custodianship (10659) 7.2.5 Market IT services and solutions (10582) Manage changes to content data architecture Develop IT services and solutions marketing requirements (10660) strategy (10650) 7.4.3 Manage information resources (10585) Develop and manage IT customer strategy Define the enterprise information/data policies (10651) and standards (10661) Manage IT services and solutions advertising Develop and implement data and content and promotional campaigns (10652) administration (10662) Process and track IT services and solutions 7.4.4 Perform enterprise data and content management orders (10653) (10586) Define sources and destinations of content 7.3 Manage business resiliency and risk (11216) data (10663) 7.3.1 Develop and manage business resiliency (11217) Manage technical interfaces to users of Develop the business resilience strategy content (10664) (11221) Manage retention, revision, and retirement of Perform continuous business operations enterprise information (10665) planning (11222) Test continuous business operations (11223) 7.5 Develop and maintain information technology solutions Maintain continuous business operations (10566) (11224) 7.5.1 Develop the IT development strategy (10587) 7.3.2 Develop and manage regulatory compliance (11218) Establish sourcing strategy for IT development Develop the regulatory compliance strategy (10666) (11225) Define development processes, Establish regulatory compliance controls methodologies, and tools standards (10667) (11226) Select development methodologies and tools Manage regulatory compliance remediation (10668) (11227) 7.5.2 Perform IT services and solutions life cycle 7.3.3 Perform integrated risk management (11219) planning (10588) Develop an integrated risk strategy and Plan development of new requirements (10669) approach (11228) Plan development of feature and functionality Manage integrated risks (11229) enhancement (10670) 7.3.4 Develop and implement security, privacy, and data Develop life cycle plan for IT services and protection controls (11220) solutions (10671) Establish information security, privacy, and 7.5.3 Develop and maintain IT services and solutions data protection strategies and levels (11230) architecture (10589) Test, evaluate, and implement information Create IT services and solutions architecture security and privacy and data protection (10672) controls (11231) Revise IT services and solutions architecture (10673) 12 Permission granted to photocopy for personal use. ©2009 APQC
  13. 13. Retire IT services and solutions architecture 7.7.2 Develop IT support strategy (10596) (10674) Establish sourcing strategy for IT support 7.5.4 Create IT services and solutions (10590) (10702) Understand confirmed requirements (10675) Define IT support services (10703) Design IT services and solutions (10676) 7.7.3 Manage IT infrastructure resources (10597) Acquire/Develop IT service/solution Manage IT inventory and assets (10704) components (10677) Manage IT resource capacity (10705) Train services and solutions resources (10678) 7.7.4 Manage IT infrastructure operations (10598) Test IT services/solutions (10679) Deliver IT services and solutions (10706) Confirm customer acceptance (10680) Perform IT operations support services (10707) 7.5.5 Maintain IT services and solutions (10591) 7.7.5 Support IT services and solutions (10599) Understand upkeep/enhance requirements and Manage availability (10708) defect analysis (10681) Manage facilities (10709) Design change to existing IT service/solution Manage backup/recovery (10710) (10682) Manage performance and capacity (10711) Acquire/develop changed IT service/solution Manage incidents (10712) component (10683) Manage problems (10713) Test IT service/solution change (10684) Manage inquiries (10714) Retire solutions and services (10685) 7.8 Manage IT knowledge (10569) 7.6 Deploy information technology solutions (10567) 7.8.1 Develop IT knowledge management strategy 7.6.1 Develop the IT deployment strategy (10592) (10600) Establish IT services and solutions change Understand IT knowledge needs (10715) policies (10686) Understand current IT knowledge flow (10716) Define deployment process, procedures, and Coordinate strategy and roles with the tools standards (10687) enterprise KM function (10717) Select deployment methodologies and tools Plan IT knowledge management actions and (10688) priorities (10718) 7.6.2 Plan and implement changes (10593) 7.8.2 Develop and maintain IT knowledge map (10601) Plan change deployment (10689) Define knowledge elements, logical Communicate changes to stakeholders (10690) relationships and constraints, and currency Administer change schedule (10691) rules (10719) Train impacted users (10692) Identify IT knowledge sources and repositories Distribute and install change (10693) (10720) Verify change (10694) Identify IT knowledge-sharing opportunities 7.6.3 Plan and manage releases (10594) (10721) Understand and coordinate release design and Define IT knowledge processes and acceptance (10695) approaches (10722) Plan release rollout (10696) 7.8.3 Manage IT knowledge life cycle (10602) Distribute and install release (10697) Gather knowledge elements from IT Verify release (10698) knowledge sources (10723) Evaluate, create, and codify knowledge 7.7 Deliver and support information technology services elements (10724) (10568) Deploy codified IT knowledge (10725) 7.7.1 Develop IT services and solution delivery strategy Update and retire IT knowledge (10726) (10595) Evaluate and improve IT knowledge strategies Establish sourcing strategy for IT delivery and processes (10727) (10699) Define delivery processes, procedures, and tools standards (10700) Select delivery methodologies and tools (10701) Version 5.1.0-en-XI • September 2009 13
  14. 14. 8.0 Manage Financial Resources (10009) 8.1 Perform planning and management accounting (10728) Correspond/negotiate with delinquent 8.1.1 Perform planning/budgeting/forecasting (10738) accounts (10806) Develop and maintain budget policies and Discuss account resolution with internal procedures (10771) parties (10807) Prepare periodic budgets and plans (10772) Process adjustments/write off balances Prepare periodic financial forecasts (10773) (10808) 8.1.2 Perform cost accounting and control (10739) 8.2.5 Manage and process adjustments/deductions (10746) Perform inventory accounting (10774) Establish policies/procedures for adjustments Perform cost of sales analysis (10775) (10809) Perform product costing (10776) Analyze adjustments (10810) Perform variance analysis (10777) Correspond/negotiate with customer (10811) Report on profitability (11175) Discuss resolution with internal parties (10812) 8.1.3 Perform cost management (10740) Prepare chargeback invoices (10813) Determine key cost drivers (10778) Process related entries (10814) Measure cost drivers (10779) 8.3 Perform general accounting and reporting (10730) Determine critical activities (10780) 8.3.1 Manage policies and procedures (10747) Manage asset resource deployment and Negotiate service-level agreements (10815) utilization (10781) Establish accounting policies (10816) 8.1.4 Evaluate and manage financial performance (10741) Set and enforce approval limits (10817) Assess customer and product profitability Establish common financial systems (10818) (10782) 8.3.2 Perform general accounting (10748) Evaluate new products (10783) Maintain chart of accounts (10819) Perform life cycle costing (10784) Process journal entries (10820) Optimize customer and product mix (10785) Process allocations (10821) Track performance of new-customer and Process period end adjustments (e.g., accruals, product strategies (10786) currency conversions) (10822) Prepare activity-based performance measures Post and reconcile intercompany transactions (10787) (10823) Manage continuous cost improvement (10788) Reconcile general ledger accounts (10824) 8.2 Perform revenue accounting (10729) Perform consolidations and process 8.2.1 Process customer credit (10742) eliminations (10825) Establish credit policies (10789) Prepare trial balance (10826) Analyze/approve new account applications Prepare and post management adjustments (10790) (10827) Review existing accounts (10791) 8.3.3 Perform fixed-asset accounting (10749) Produce credit/collection reports (10792) Establish fixed-asset policies and procedures Reinstate or suspend accounts based on credit (10828) policies (10793) Maintain fixed-asset master data files (10829) 8.2.2 Invoice customer (10743) Process and record fixed-asset additions and Maintain customer/product master files (10794) retires (10830) Generate customer billing data (10795) Process and record fixed-asset adjustments, Transmit billing data to customers (10796) enhancements, revaluations, and transfers Post receivable entries (10797) (10831) Resolve customer billing inquiries (10798) Calculate and record depreciation expense (10833) 8.2.3 Process accounts receivable (AR) (10744) Process and record fixed-asset maintenance Establish AR policies (10799) and repair expenses (10832) Receive/deposit customer payments (10800) Reconcile fixed-asset ledger (10834) Apply cash remittances (10801) Track fixed-assets including physical inventory Prepare AR reports (10802) (10835) Post AR activity to the general ledger (10803) Provide fixed-asset data to support tax, 8.2.4 Manage and process collections (10745) statutory, and regulatory reporting (10836) Establish policies for delinquent accounts 8.3.4 Perform financial reporting (10750) (10804) Prepare business unit financial statements Analyze delinquent account balances (10805) (10837) 14 Permission granted to photocopy for personal use. ©2009 APQC
  15. 15. Prepare consolidated financial statements Produce and distribute employee annual tax (10838) statements (10867) Perform business unit reporting/review File regulatory payroll tax forms (10868) management reports (10839) Perform consolidated reporting/review of cost 8.6 Process accounts payable and expense reimbursements management reports (10840) (10733) Prepare statements for board review (10841) 8.6.1 Process accounts payable (10756) Produce quarterly/annual filings and Verify AP pay file with PO vendor master file shareholder reports (10842) (10869) Produce regulatory reports (10843) Maintain/manage electronic commerce (10870) Audit invoices and key data in AP system 8.4 Manage fixed-asset project accounting (10731) (10871) 8.4.1 Perform capital planning and project approval Approve payments (10872) (10751) Process financial accruals and reversals (10873) Develop capital investment policies and Process taxes (10874) procedures (10844) Research/resolve exceptions (10875) Develop and approve capital expenditure plans Process payments (10876) and budgets (10845) Respond to AP inquiries (10877) Review and approve capital projects and fixed- Retain records (10878) asset acquisitions (10846) Adjust accounting records (10879) Conduct financial justification for project 8.6.2 Process expense reimbursements (10757) approval (10847) Establish and communicate expense 8.4.2 Perform capital project accounting (10752) reimbursement policies and approval limits Create project account codes (10848) (10880) Record project-related transactions (10849) Capture and report relevant tax data (10881) Monitor and track capital projects and budget Approve reimbursements and advances spending (10850) (10882) Close/capitalize projects (10851) Process reimbursements and advances (10883) Measure financial returns on completed Manage personal accounts (10884) capital projects (10852) 8.7 Manage treasury operations (10734) 8.5 Process payroll (10732) 8.7.1 Manage treasury policies and procedures (10758) 8.5.1 Report time (10753) Establish scope and governance of treasury Establish policies and procedures (10853) operations (10885) Collect and record employee time worked Establish and publish treasury policies (10886) (10854) Develop treasury procedures (10887) Analyze and report paid and unpaid leave Monitor treasury procedures (10888) (10855) Audit treasury procedures (10889) Monitor regular, overtime, and other hours Revise treasury procedures (10890) (10856) Develop and confirm internal controls for Analyze and report employee utilization treasury (10891) (10857) Define system security requirements (10892) 8.5.2 Manage pay (10754) 8.7.2 Manage cash (10759) Enter employee time worked into payroll Manage and reconcile cash positions (10893) system (10858) Manage cash equivalents (10894) Maintain and administer employee earnings Process and oversee electronic fund transfers information (10859) (EFTs) (10895) Maintain and administer applicable deductions Develop cash flow forecasts (10896) (10860) Manage cash flows (10897) Monitor changes in tax status of employees Produce cash management accounting (10861) transactions and reports (10898) Process and distribute payments (10862) Manage and oversee banking relationships Process and distribute manual checks (10863) (10899) Process period-end adjustments (10864) Analyze, negotiate, resolve, and confirm bank Respond to employee payroll inquiries (10865) fees (10900) 8.5.3 Process payroll taxes (10755) 8.7.3 Manage in-house bank accounts (10760) Calculate and pay applicable payroll taxes Manage in-house bank accounts for (10866) subsidiaries (10901) Version 5.1.0-en-XI • September 2009 15
  16. 16. Manage and facilitate inter-company 8.8.2 Operate controls and monitor compliance with borrowing transactions (10902) internal controls policies and procedures (10763) Manage centralized outgoing payments on Design and implement control activities behalf of subsidiaries (10903) (10917) Manage central incoming payments on behalf Monitor control effectiveness (10918) of subsidiaries (10904) Remediate control deficiencies (10919) Manage internal payments and netting Create compliance function (10920) transactions (10905) Operate compliance function (10921) Calculate interest and fees for in-house bank Implement and maintain controls-related accounts (10906) enabling technologies and tools (10922) Provide account statements for in-house bank 8.8.3 Report on internal controls compliance (10764) accounts (10907) Report to external auditors (10923) 8.7.4 Manage debt and investment (10761) Report to regulators, share-/debt-holders, Manage financial intermediary relationships securities exchanges, etc. (10924) (10908) Report to third parties (e.g., business partners) Manage liquidity (10909) (10925) Manage issuer exposure (10910) Report to internal management (10926) Process and oversee debt and investment transactions (10911) 8.9 Manage taxes (10736) Process and oversee foreign currency 8.9.1 Develop tax strategy and plan (10765) transactions (10912) Develop foreign, national, state, and local tax Produce debt and investment accounting strategy (10927) transaction reports (10913) Consolidate and optimize total tax plan (10928) 8.7.5 Manage financial risks (11208) Maintain tax master data (10929) Manage interest-rate risk (11209) 8.9.2 Process taxes (10766) Manage foreign-exchange risk (11210) Perform tax planning/strategy (10930) Manage exposure risk (11211) Prepare returns (10931) Develop and execute hedging transactions Prepare foreign taxes (10932) (11212) Calculate deferred taxes (10933) Evaluate and refine hedging positions (11213) Account for taxes (10934) Produce hedge accounting transactions and Monitor tax compliance (10935) reports (11214) Address tax inquiries (10936) Monitor credit (11215) 8.10 Manage international funds/consolidation (10737) 8.8 Manage internal controls (10735) 8.10.1 Monitor international rates (10767) 8.8.1 Establish internal controls, policies, and procedures 8.10.2 Manage transactions (10768) (10762) 8.10.3 Monitor currency exposure/hedge currency (10769) Establish board of directors and audit 8.10.4 Report results (10770) committee (10914) Define and communicate code of ethics (10915) Assign roles and responsibility for internal controls (10916) Define business process objectives and risks (11250) Define entity/unit risk tolerances (11251) 16 Permission granted to photocopy for personal use. ©2009 APQC
  17. 17. 9.0 Acquire, Construct, and Manage Property (10010) 9.1 Design and construct/acquire nonproductive assets 9.2.2 Repair workplace and assets (10946) (10937) 9.2.3 Provide preventive maintenance for workplace and 9.1.1 Develop property strategy and long-term vision assets (10947) (10941) 9.2.4 Manage security (10948) Confirm alignment of property requirements 9.2.5 Manage facilities operations (10949) with business strategy (10955) Assess the external environment (10956) 9.3 Obtain, install, and plan maintenance for productive Make build or buy decision (10957) assets (10939) 9.1.2 Develop, construct, and modify sites (10942) 9.3.1 Develop ongoing maintenance policies for 9.1.3 Plan facility (10943) productive assets (10950) Design facility (10958) Analyze assets and predict maintenance Analyze budget (10959) requirements (10967) Select property (10960) Develop approach to integrate preventive Negotiate terms for facility (10961) maintenance into production schedule (10968) Manage construction or modification to 9.3.2 Obtain and install equipment (10951) building (10962) Design engineering solution for the 9.1.4 Provide workspace and assets (10944) manufacturing process (10969) Acquire workspace and assets (10963) Procure equipment (10970) Change fit/form/function of workspace and Install and commission equipment (10971) assets (10964) 9.4 Dispose of productive and nonproductive assets (10940) 9.2 Maintain nonproductive assets (10938) 9.4.1 Develop exit strategy (10952) 9.2.1 Move people and assets (10945) 9.4.2 Perform sale or trade (10953) Relocate people (10965) 9.4.3 Perform abandonment (10954) Relocate material and tools (10966) 9.5 Manage physical risk (11207) 10.0 Manage Environmental Health and Safety (EHS) (11179) 10.1 Determine environmental health and safety impacts Implement emergency response program (11180) (11196) 10.1.1 Evaluate environmental impact of products, Implement pollution prevention program services, and operations (11186) (11197) 10.1.2 Conduct health and safety and environmental 10.4.3 Provide employees with EHS support (11195) audits (11187) 10.5 Ensure compliance with regulations (11184) 10.2 Develop and execute environmental health and 10.5.1 Monitor compliance (11198) safety program (11181) 10.5.2 Perform compliance audit (11199) 10.2.1 Identify regulatory and stakeholder requirements 10.5.3 Comply with regulatory stakeholders’ requirements (11188) (11200) 10.2.2 Assess future risks and opportunities (11189) 10.6 Manage remediation efforts (11185) 10.2.3 Create EHS policy (11190) 10.6.1 Create remediation plans (11201) 10.2.4 Record and manage EHS events (11191) 10.6.2 Contact and confer with experts (11202) 10.3 Train and educate employees (11182) 10.6.3 Identify/dedicate resources (11203) 10.3.1 Communicate EHS issues to stakeholders and 10.6.4 Investigate legal aspects (11204) provide support (11192) 10.6.5 Investigate damage cause (11205) 10.4 Monitor and manage environmental health and safety 10.6.6 Amend or create policy (11206) management program (11183) 10.4.1 Manage EHS costs and benefits (11193) 10.4.2 Measure and report EHS performance (11194) Version 5.1.0-en-XI • September 2009 17